Sankaty in pipeline with $408.48 million CLO; AAA, mezzanine notes active in secondary

By Cristal Cody

Tupelo, Miss., Nov. 4 – The CLO deal pipeline is beginning to fill with transactions set to price before the year ends, while the secondary market saw some action over the day, according to market sources on Wednesday.

Sankaty Advisors LLC is in the pipeline with a $408.48 million transaction, the CLO manager’s third offering this year.

In the secondary market, more than $300 million of CLO AAA and mezzanine notes were scheduled to appear on BWIC lists on Wednesday, a source said.

Sankaty offers CLO

Coming up in the deal pipeline, Sankaty Advisors plans to price $408.48 million of notes due Dec. 15, 2028 in the Avery Point CLO VII, Ltd./Avery Point CLO VII, Corp. transaction, according to a market source.

The deal includes $232 million of class A-1 senior secured floating-rate notes (Aaa); $20 million of class A-2 senior secured fixed-rate notes (Aaa); $45.7 million of class B senior secured floating-rate notes (Aa2); $21.8 million of class C senior secured deferrable floating-rate notes (A2); $26.65 million of class D senior secured deferrable floating-rate notes (Baa3); $21.2 million of class E senior secured deferrable floating-rate notes (Ba3); $7.2 million of class F senior secured deferrable floating-rate notes (B3) and $33.93 million of subordinated notes.

J.P. Morgan Securities LLC is the placement agent.

The CLO has a three-year non-call period and a five-year reinvestment period.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.